Optimistic Outlook on Chartreuse Corporation and Lavender Ltd.

What are the expected returns and standard deviations for Chartreuse Corporation and Lavender Ltd.?

How do these values indicate the potential performance of each stock?

Expected Returns and Standard Deviations

The expected return for Chartreuse Corporation is 12%, while Lavender Ltd. is at 4%. The standard deviation of returns is 40% for Chartreuse and 25% for Lavender.

When we look at the expected returns, it is evident that Chartreuse Corporation is expected to provide a higher return of 12%. This indicates that investing in Chartreuse may potentially yield greater profits compared to Lavender Ltd., which is expected to offer a lower return of 4%. Investors seeking higher returns may find Chartreuse Corporation more appealing based on these expected return figures.

Regarding the standard deviations of returns, Chartreuse Corporation has a standard deviation of 40%, indicating higher volatility in its returns. On the other hand, Lavender Ltd. has a lower standard deviation of 25%, suggesting a more stable performance in terms of volatility. This information can help investors assess the risk associated with each stock. Investors with a higher risk tolerance may be willing to invest in Chartreuse Corporation despite its higher volatility, while those seeking more stability may opt for Lavender Ltd.